Hot vs. Hardware Wallet

For any person who invests in bitcoin or any other type of online digital currency, you will know just how important it is to safeguard the money you have invested in the crypto currency. Since you do not really have the money with you in a tangible form you will need to keep the data in some safe application or hardware to protect it from other people. More often than not you hear about a person who had their bitcoins stolen from them. While it is not an easy thing to do, people are still able to hack in to another person’s computer and steal the files that contained the bitcoins from them. This is why you need a sort of application or a device in which you can store the bitcoins without any fear of them being stolen.

There are two main types of wallets that are the most popular bitcoin wallets. These are the hot wallets and the hardware based wallets. The hot wallets are the wallets that are made online, on a computer, or kept in a mobile phone. These wallets are generally secure because of pass codes and added protection that they offer. However these are either based online or are consistently connected to the internet and that reduces the safety that they offer. Although more difficult it is still possible to hack through hot wallets and figure out their pass codes to gain access to the bitcoins stored in them. However, with hardware based wallets you will be able to keep your bitcoin data offline and leave no traces of it online. The hardware wallets are just a lot safer as they tend to be malware proof or virus proof so plugging them in to a computer will not result in a loss for you either.